The central banks of Japan and the United States are keeping a close eye on the impact of the coronavirus on economic activity and said they would take “appropriate” measures in response to the virus, which Paris-based OECD said presents the global economy with its greatest danger since the financial crises.
In its interim economic outlook, the Organisation for Economic Co-operation and Development (OECD) on March 2 slashed its forecast for world economic growth to 2.4 percent from 2019’s 2.9 percent and November’s forecast of 2.9 percent, warning growth could even be negative in the first quarter of 2020.
“Growth prospects remain highly uncertain,” OECD said, calling on governments to “act swiftly and forcefully to overcome the coronavirus and its economic impact.”
Both the Bank of Japan (BOJ) and the U.S. Federal Reserve have taken the unusual step of issuing statements in response to the plunge in global stock markets since Feb. 20 due to fear over how the coronavirus, or COVID-19, will affect global supply chains, travel and commodity markets.
Both central banks say they will take “appropriate” measures, with the BOJ saying it will provide ample liquidity and ensure stability in financial markets through market operations and asset purchases, while the Fed said it would use its tools to support the economy.
Free Reports:
The Bank of Japan issued the following statement from its governor on March 2, 2020: